New Pension Rule: The Central Government has clarified the pension rules. The government states that pension calculations will begin on the employee’s last working day. The pension rules will apply according to the policy in effect at that time.
The central government has clarified how pension and family pension will be calculated for employees under the Central Civil Services (Pension) Rules, 2021. The Department of Pension and Pensioners’ Welfare (DoPPW) has issued an office memorandum to clear up confusion about which day will be considered an employee’s “last working day” for pension purposes. This means that an employee’s pension or family pension will now be determined according to the rules of their last working day.
In essence, the rules will apply on the day an employee retires , leaves their job, or dies. This government order has been issued to eliminate confusion about which day will be considered the last working day for pension calculations. This will eliminate any difficulties or errors in determining pensions.
Pension rules will be decided like this
Under Rule 5 of the new CCS (Pension) Rules, 2021, it has been decided that the pension or family pension of any government employee will be determined according to the rules in force on the day on which he retires, resigns, is removed from service, or dies. The government has clearly stated in its order, “The pension or family pension of a government employee will be determined according to the rules applicable at the time of his retirement, resignation, or death.”
What if the employee is on leave or suspended?
According to a report in Business Standard, the government has also clearly stated that if an employee is on leave, absenteeism, or under suspension before retirement, the date of their retirement or death will be considered part of that period. This means that in such cases, there will be no break in their service. This means that pension calculations will continue, and the pension of the employee or their family will not be affected.
New rules for family pension
A new rule has been issued regarding family pension. According to the new rule, after the death of an employee, his parents will have to submit a life certificate to receive the pension. This will keep their records updated with the government and if one parent dies, there will be no situation of mistakenly giving more pension. According to Rule 12(5) of the new CCS (Extraordinary Pension) Rules, 2023, if a government employee does not have a wife or children, his parents will receive family pension for life. This rule ensures that such parents remain financially secure.
